Thanks for the reports and screenshots. I was able to duplicate this, but got the server running with -heapsize. It also took several tries to get connected, but I'm doing wifi server with wifi client, so I'm blaming that. heapsize is the only memory command recognized by super8.
Try: qbismS8.exe -dedicated -heapsize 256000 BTW, it is not needed to set IP at startup unless you have multiple network adapters on one computer. Type status in the console to see IP.

I got it working, seems it was a issue with my quake directory I was trying to use. I grabbed a "fresh" copy of a quake directory from a fresh steam install of quake and now everything is working!!!! Thanks a bunch man, love this engine!

I was able to connect/ reconnect to other servers on the internet so it looks like a server issue. I'm guessing the server isn't really releasing the slot after player disconnects, and may be treating the new connection attempt as a duplicate. I will explore that possibility.